Correlation Between Dongfeng Automobile and Guangdong Marubi
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By analyzing existing cross correlation between Dongfeng Automobile Co and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Dongfeng Automobile and Guangdong Marubi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dongfeng Automobile with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Guangdong Marubi.
Diversification Opportunities for Dongfeng Automobile and Guangdong Marubi
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dongfeng and Guangdong is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio and Dongfeng Automobile is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dongfeng Automobile Co are associated (or correlated) with Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Dongfeng Automobile i.e., Dongfeng Automobile and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Guangdong Marubi
Assuming the 90 days trading horizon Dongfeng Automobile is expected to generate 17.05 times less return on investment than Guangdong Marubi. In addition to that, Dongfeng Automobile is 1.08 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.01 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.11 per unit of volatility. If you would invest 2,316 in Guangdong Marubi Biotechnology on October 25, 2024 and sell it today you would earn a total of 919.00 from holding Guangdong Marubi Biotechnology or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Dongfeng Automobile |
| Guangdong Marubi Bio |
Dongfeng Automobile and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Guangdong Marubi
The main advantage of trading using opposite Dongfeng Automobile and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile position performs unexpectedly, Guangdong Marubi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Dongfeng Automobile vs. Touchstone International Medical | Dongfeng Automobile vs. Easyhome New Retail | Dongfeng Automobile vs. XinJiang GuoTong Pipeline | Dongfeng Automobile vs. Tinavi Medical Technologies |
| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Postal Savings Bank | Guangdong Marubi vs. Bank of Communications | Guangdong Marubi vs. China Merchants Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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